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Bank of England holds record low rate, QE unchanged again

Staff writer |
Bank of England left its key record-low interest rate and the size of its asset purchases unchanged in unanimous vote for a third straight month.

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The Monetary Policy Committee, led by Governor Mark Carney, voted 9-0 to hold the interest rate at 0.50 percent, the bank said in a statement.

The rate has been at this low level for seven years and the vote has been unanimous after policymaker Ian McCafferty dropped his call for a quarter point rate hike in February for the first time since July 2015.

Policymakers also unanimously voted to maintain quantitative easing at GBP 375 billion.

"The MPC's best collective judgement is that it is more likely than not that Bank Rate will need to increase over the forecast period to ensure inflation returns to the target in a sustainable fashion," the bank said.

"However, referendum effects are likely to make macroeconomic and financial market indicators harder to interpret over the next few months, and the Committee is likely to react more cautiously to data news over this period than would normally be the case."

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